InvestorQ : How has been the grey market price of Dreamfolks IPO, which opens on 24th August?
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How has been the grey market price of Dreamfolks IPO, which opens on 24th August?

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Rashi Mehra answered.
2 months ago
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The IPO of Dreamfolks Services Ltd is entirely an offer for sale (OFS) and is priced in the band of Rs308 to Rs326. The total size of the issue is Rs562 crore. The stock is expected to list only on the 06th of September. Grey market price is the informal trading price of the stock ahead of the IPO. Normally, the IPO grey market trading starts about 4-5 days ahead of the issue opening and continues all the way till the actual listing of the IPO. In this case, since the price band was announced on 21st August, GMP is only available from Monday.

The IPO of Dreamfolks Services Ltd has been trading in the grey market with a premium of Rs85 per share. If you consider the upper end of the price band of Rs.326 as the indicative price, then the grey market premium is around 26.07%. This presupposes a likely listing price of Rs411 per share. However, the GMP data is very dynamic and will change with the subscription data flowing in. We sat that happen last week in the case of the IPO of Syrma SGS Technology after the QIB subscription was very robust at over 87 times.

Here are couple of things you must know about the GMP. Firstly, it can be extremely dynamic so the market conditions and subscription performance will impact the GMP. Secondly, GMP is not an official price point but just a popular informal price point. However, it has proved to be fairly accurate of the real picture.
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